Amended in Assembly June 23, 2016

Amended in Assembly June 8, 2016

Amended in Assembly July 8, 2015

Amended in Assembly July 1, 2015

Amended in Senate April 21, 2015

Senate BillNo. 465


Introduced by Senators Hill and Hancock

February 25, 2015


An act to add Sections 7021 and 7071.18 to the Business and Professions Code, and to add Section 18924.5 to the Health and Safety Code, relating to building construction.

LEGISLATIVE COUNSEL’S DIGEST

SB 465, as amended, Hill. Building construction: contractors: discipline: reporting: building standards.

(1) Existing law, the Contractors’ State License Law, provides for the licensure, regulation, and discipline of contractors by the Contractors’ State License Board. Existing law requires the board, with the approval of the Director of Consumer Affairs, to appoint a registrar of contractors to serve as the executive officer and secretary of the board. Under existing law, protection of the public is required to be the highest priority for the Contractors’ State License Board in exercising its licensing, regulatory, and disciplinary functions.

Under existing law, the Division of Occupational Safety and Health has the power, jurisdiction, and supervision over every employment and place of employment in this state, which is necessary to adequately enforce and administer all laws and lawful standards and orders, or special orders requiring such employment and place of employment to be safe, and requiring the protection of the life, safety, and health of every employee in such employment or place of employment.

This bill, by January 1, 2018, would require the board to enter into an interagency agreement with the Division of Occupational Safety and Health to ensure that specified disciplinary information relating to a licensed contractor is timely reported to the board. The bill, by January 1, 2018, would also require the board to enter into an interagency agreement with any other state or local agency the board deems to be in possession of information relevant to its priority to protect the public. By requiring a local agency to enter into an interagency agreement with the board, the bill would impose a state-mandated local program.

This bill would require a licensee to report to the registrar within 90 days of the date that the licensee has knowledge of the conviction of the licensee for any felony or any other crime substantially related to the qualifications, functions, and duties of a licensed contractor.

By January 1, 2018, this bill would require the board to report to the Legislature the results of a study to determine if the boards’ ability to protect the public would be enhanced by regulations requiring licensees to report judgments, arbitration awards against them, or settlement payments of claims for construction defects they have made in excess of a certain amount to be determined by the board, as provided. The bill would require the board to consult with licensees, insurers, consumers, and other interested parties during the development of the study.begin insert The bill would prohibit the disclosure of confidential information received by the board in preparing this required study.end insert

(2) Under existing law, there exists the California Building Standards Commission. Existing law requires the California Building Standards Commission to, among other things, review the standards of adopting state agencies and approve, return for amendment with recommended changes, or reject building standards submitted to the commission for its approval, as provided.

This bill would require the California Building Standards Commission to convene a specified working group to investigate existing building standards associated with the construction, inspection, and maintenance of exterior elevated elements. By January 1, 2018, the bill would require the working group to report to the California Building Standards Commission any findings and possible recommendations for statutory changes or changes to the California Building Standards Code. By January 1, 2018, the bill would also require the working group to provide that report to a specified legislative committee. However, if, at any time, it is determined by the working group that one or more changes to the California Building Standards Code are needed as soon as possible in order to protect the public, the bill would require the working group to submit the proposed changes to the California Building Standards Commission for consideration as soon as possible.

begin insert

(3) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

end insert
begin insert

This bill would make legislative findings to that effect.

end insert
begin delete

(3)

end delete

begin insert(4)end insert The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

Section 7021 is added to the Business and
2Professions Code
, to read:

3

7021.  

(a) By January 1, 2018, the board shall enter into an
4interagency agreement with the Division of Occupational Safety
5and Health to ensure that any citation, fine, or any other actions
6taken by the division against a licensed contractor, along with any
7other information the division may possess regarding a licensed
8contractor, is timely reported to the board.

9(b) By January 1, 2018, the board shall enter into an interagency
10agreement with any other state or local agency the board deems
11to be in possession of any information relevant to its priority to
12protect the public described in Section 7000.6.

13

SEC. 2.  

Section 7071.18 is added to the Business and
14Professions Code
, to read:

P4    1

7071.18.  

(a) Notwithstanding any other law, a licensee shall
2report to the registrar in writing the occurrence of any of the
3following within 90 days after the licensee obtains knowledge of
4the event:

5(1) The conviction of the licensee for any felony.

6(2) The conviction of the licensee for any other crime that is
7substantially related to the qualifications, functions, and duties of
8a licensed contractor.

9(b) begin insert(1)end insertbegin insertend insertBy January 1, 2018, the board shall report to the
10Legislature the results of a study to determine if the boards’ ability
11to protect the public as described in Section 7000.6 would be
12enhanced by regulations requiring licensees to report judgments,
13arbitration awards against them, or settlement payments of claims
14for construction defects they have made in excess of a certain
15amount to be determined by the board. The board shall consult
16with licensees, insurers, consumers, and other interested parties
17during the development of the study. The study shall include, but
18not be limited to, criteria used by insurers or others to differentiate
19between settlements that are for nuisance value and those that are
20not, the practice of other boards within the department, and any
21other criteria considered reasonable by the board. The board shall
22submit the report to the Legislature in accordance with Section
239795 of the Government Code.

begin insert

24
(2) Confidential information, including, but not limited to,
25arbitration awards, received by the board for the purposes of
26completing the study or making the report required by paragraph
27(1) is confidential and shall not be disclosed pursuant to any state
28law, including, but not limited to, the California Public Records
29Act (Chapter 3.5 (commencing with Section 6250) of Division 7
30of Title 1 of the Government Code).

end insert
31

SEC. 3.  

Section 18924.5 is added to the Health and Safety
32Code
, to read:

33

18924.5.  

(a) The California Building Standards Commission
34shall convene a working group to investigate existing building
35standards associated with the construction, inspection, and
36maintenance of exterior elevated elements.

37(b) The working group shall include, but not be limited to,
38representatives from the Department of Housing and Community
39Development, the Division of the State Architect- Structural Safety,
40the Office of the State Fire Marshal, local building officials and
P5    1plan checkers, structural engineers, apartment owners and
2managers, building industry, wood, steel and concrete industries,
3and any other interested parties.

4(c) The working group shall review related documents and
5reports, including, but not limited to, forensic reports related to
6exterior elevated element failures in California, reports and studies
7used in the development of national and state building codes, and
8any other material deemed relevant to determine if any changes
9need to be made to the construction specifications or inspection
10requirements, excluding routine inspections that occur after project
11completion, contained within the California Building Standards
12Code.

13(d) (1) By January 1, 2018, the working group shall report to
14the California Building Standards Commission any findings and
15possible recommendations for statutory changes or changes to the
16California Building Standards Code. By January 1, 2018, the
17working group shall also provide that report to the Senate
18Committee on Business, Professions and Economic Development.

19(2) Notwithstanding paragraph (1), if, at any time, it is
20determined by the working group that one or more changes to the
21California Building Standards Code are needed as soon as possible
22in order to protect the public, the working group shall submit the
23proposed changes to the California Building Standards Commission
24for consideration as soon as possible.

25begin insert

begin insertSEC. 4.end insert  

end insert
begin insert

The Legislature finds and declares that Section 2 of
26this act, which adds Section 7071.18 to the Business and
27Professions Code, imposes a limitation on the public’s right of
28access to the meetings of public bodies or the writings of public
29officials and agencies within the meaning of Section 3 of Article
30I of the California Constitution. Pursuant to that constitutional
31provision, the Legislature makes the following findings to
32demonstrate the interest protected by this limitation and the need
33for protecting that interest:

end insert
begin insert

34
In order to allow the Contractors’ State License Board to fully
35accomplish its responsibilities in preparing the study described
36in Section 7071.18 of the Business and Professions Code, it is
37imperative to protect the interests of those persons submitting
38confidential information to the board to ensure that any personal
39or sensitive business information required to be submitted by those
40persons is protected as confidential information.

end insert
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begin deleteSEC. 4.end delete
2
begin insertSEC. 5.end insert  

If the Commission on State Mandates determines that
3this act contains costs mandated by the state, reimbursement to
4local agencies and school districts for those costs shall be made
5pursuant to Part 7 (commencing with Section 17500) of Division
64 of Title 2 of the Government Code.



O

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